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Pell Grants Helping More Students Pay for College

By Betsy Miller Kittredge on 10-29-2008, 12:30 PM in

More students than ever before are receiving Pell Grants to help pay for college and that number is on the rise, according to a new report released today by the College Board. The study also shows that, with college costs rising, students are continuing to access the federal student loans for which they are eligible. Over the past year, the average tuition and fees for in-state students at four-year public colleges and universities increased by 6.4 percent to $6,585 for the 2008-2009 school year.

"With college costs still rising and families facing growing uncertainty in today's economy, federal student aid is more important than ever," Chairman George Miller said.  "Over the past two years, the Democratic Congress has made college affordability a top priority -- providing historic investments in federal student aid and safeguarding federal student loans from the turbulence in the nation's financial markets. This study reinforces that these efforts are critically needed to help make college more affordable and accessible for students and their families.

"This report also shows that the Pell Grant scholarship -- which Congress has significantly boosted in the past two years --  is playing an increasingly important role in expanding college access, especially for low- and middle-income students. As we work to get our economy back on the road to recovery, it is vital to make sure that students are aware of all their student aid options and are fully maximizing their federal student loans before turning to more expensive private loans."

According to the report, the number of students receiving almost all federal grants and loans have increased over the last ten years and the number of students receiving Pell Grant scholarships has increased from 3.7 million in 1997-98 to 5.4 million in 2007-2008.

Last year, Congress enacted the College Cost Reduction and Access Act, which provides the largest increase in student financial aid since the GI bill. The law increases the maximum Pell Grant scholarship by more than $1,000, cuts interest rates on need-based student loans in half, creates income based repayment programs for students graduating with college debt and gives loan forgiveness incentive programs for public service workers.

Congress also recently enacted the Ensuring Continued Access to Student Loans Act to ensure that students and families can continue to have access to all the federal college loans they are eligible for.

In August, Congress enacted the Higher Education Opportunity Act, the first reauthorization of the nation's primary higher education laws in a decade. The law addresses rising college tuition prices, makes textbook costs more manageable, simplifies the federal student aid application process, makes the Pell Grant scholarship available year-round for the first time, provides new consumer protections for federal and private student loan borrowers, and much more.

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